Final answer:
Movements along the supply or demand curve are called 'Change in the quantity supplied' or 'Change in the quantity demanded' and occur due to price changes. Shifts in the supply or demand curves indicate changes in other market conditions, affecting entire curves and altering market equilibrium. The correct option is 1.
Step-by-step explanation:
Movements along the supply or demand curves are referred to as a 'Change in the quantity supplied' when it pertains to the supply curve, and a 'Change in the quantity demanded' when it pertains to the demand curve. These movements are a response to changes in price alone and do not signify an overall shift in the supply or demand curve, which would require changing factors other than price, such as consumer income or production technology.
In contrast, shifts in the supply or demand curves indicate a change in the market conditions other than price, affecting the willingness to supply or demand more or less at every price point. A shift in one curve causes a movement along the other curve but never causes a shift in the second curve. Understanding this difference is critical in analyzing the dynamics of market equilibrium.